The government is all set to tweak customs duties in different commodities, including sugar, edible oils, wheat, pulses and fertiliser, starting this week to align them with local rates after GST implementation, a move aimed at protection of domestic interests.
It will also look at evolving a roadmap for faster inclusion of petroleum products under GST to prevent state-owned oil companies from losing out on the biggest tax reform. A crucial meeting of secretaries of different economic ministries handling commodities was held by the prime minister’s office (PMO) on June 30, a day before GST was rolled out, sources said. The PMO took feedback from the top officials on the likely impact on prices after GST, the sources said. Now, the PMO will take decision and direct ministries to send notes for making the changes wherever required, they added. “The import duty on sugar may be raised to protect sugar mills’ interest as they have sought imposition of 60 per cent duty, claiming they will not be able to pay farmers next season,” a source said. Even though there is no assessment of sugar production for next year as yet, the government is likely to increase the duty to ensure mills’ finances do not sour. The sugar industry had claimed that a drop in global price would make import viable even at 40 per cent duty and hence there is a need to increase the duty. They claim cheaper imports will lower domestic sugar price and ultimately mills would not be able to pay sugarcane farmers.